Fiserv Anticipates High Demand for Clover POS Solutions

Discover how Fiserv continues to meet the rising demand for Clover’s point-of-sale solutions, reflecting a growing trend in digital payments and financial innovation. Gain insights from CEO Frank Bisignano’s earnings call, highlighting Fiserv’s robust performance and future outlook in the FinTech landscape.

Fiserv, a leading provider of financial technology solutions, continues to witness robust demand for its point-of-sale (POS) systems, enabling merchants to facilitate payments seamlessly.

In their recent earnings call on Tuesday (April 23), Fiserv revealed a consolidated adjusted revenue growth of 7% in the first quarter, reaching $4.9 billion.

CEO Frank Bisignano highlighted the strong performance of both segments – Merchant Solutions and Financial Solutions. Merchant Solutions experienced a notable 13% growth in adjusted revenue, while the Financial Solutions segment saw a 2% increase year over year.

Bisignano attributed this growth to resilient consumer spending patterns, particularly in sectors such as dining out, entertainment, and hospitality, which have benefited the Merchant Solutions segment.

Within the Merchant Solutions segment, the Clover platform has been witnessing significant traction with its hardware and software solutions, marking its second consecutive quarter of 30% revenue growth. Notably, small business growth reached 8%, and enterprise transactions surged by 12%.

Bisignano projected that Clover’s annualized run rate is expected to reach $4.5 billion by 2026. The platform has already achieved a penetration rate of 20% within Fiserv’s Value Added Solutions, driven by the success of Clover’s Software as a Service (SaaS) and Clover Capital. Additionally, new Clover-related products are slated for launch later in 2024.

Moreover, Fiserv is gearing up to introduce its SnapPay product, a B2B payments solution designed for mid-market merchants, which seamlessly integrates with popular ERP solutions. The company is witnessing significant demand for SnapPay, especially in the Asia-Pacific (APAC) region, where it has secured partnerships with over 50 ISO and PayFac partners.

In the financial segment, there is a notable demand for modernization and innovation. Fiserv secured four FinTech wins for new and traditional use cases in Q1. Digital payment solutions remain strong, with a 9% year-on-year growth in revenue, including a remarkable 45% surge in Zelle transactions.

Looking ahead, Fiserv anticipates strong client demand for FedNow and RTP integration. CFO Robert Hau emphasized the synergies between Fiserv’s segments, emphasizing the company’s unique position as the sole provider of merchant, bank IT, and payments functionalities, following the success of the Fiserv/First Data merger.

Maintaining its organic revenue growth outlook for the year at 15% to 17%, Fiserv remains optimistic about its continued growth trajectory and the evolving landscape of financial technology solutions.